Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Listed: All the MVNOs in South Africa – 2025 edition

      19 June 2025

      TCS | Tech, townships and tenacity: Spar’s plan to win with Spar2U

      19 June 2025

      WhatsApp founders hated ads – Meta is adding them anyway

      19 June 2025

      China’s car factories run cold as price war masks deep overcapacity

      19 June 2025

      Yellow Card, Visa in deal to hasten stablecoin uptake in Africa

      19 June 2025
    • World

      Watch | Starship rocket explodes in setback to Musk’s Mars mission

      19 June 2025

      Trump Mobile dials into politics, profit and patriarchy

      17 June 2025

      Samsung plots health data hub to link users and doctors in real time

      17 June 2025

      Beijing’s chip champions blacklisted by Taiwan

      16 June 2025

      China is behind in AI chips – but for how much longer?

      13 June 2025
    • In-depth

      Meta bets $72-billion on AI – and investors love it

      17 June 2025

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025
    • TCS

      TCS+ | AfriGIS’s Helen Hulett on how tech can help resolve South Africa’s water crisis

      18 June 2025

      TechCentral Nexus S0E2: South Africa’s digital battlefield

      16 June 2025

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025

      TCS+ | The future of mobile money, with MTN’s Kagiso Mothibi

      6 June 2025

      TCS+ | AI is more than hype: Workday execs unpack real human impact

      4 June 2025
    • Opinion

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025

      South Africa’s next crisis? Being offline in an AI-driven world

      2 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Nersa agrees with Eskom on rates

    Nersa agrees with Eskom on rates

    By Editor1 August 2012
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    The national energy regulator confirmed on Wednesday that it aims to heed Eskom’s call to have South Africans pay cost reflective electricity prices by 2018.

    Nersa’s Thembani Bukula said the regulator would receive Eskom’s medium term tariff application, called MYPD3, by the end of the month, and then hold consultations for two months before deciding the increase regime for the next five years.

    “We have done our own calculation of what the price increase needs to be, to be cost-reflective. Our own model gives us an impression but we need certain inputs from industry,” he said on the sidelines of a briefing to parliament’s portfolio committee on energy.

    The consultation period will end on 30 November. Nersa will then hold public hearings on the tariff increases in January, before announcing a decision at the end of February next year, he told the committee.

    Eskom’s spokesman Hilary Joffe confirmed that Eskom received extensive comment on its application from national treasury and the SA Local Government Association (Salga) on Tuesday.

    Asked whether the finance ministry recommended Eskom adjusts its application, Joffe declined to comment. Eskom has also been tight-lipped on reports that leaked documents reveal it is demanding annual increases of between 14,6% and 19%.

    Eskom applied for increases of 45% in its MYPD2 submission for 2009 to 2012, and treasury recommended that this be downscaled to 35%.

    Nersa awarded increases of roughly 31% annually but this was adjusted to 16% in the past two years, after government waived dividends of some R7,7bn.

    Bukula noted that this reprieve to the consumer moved back the goalposts on achieving tariff reflectivity, hence the new target of 2018.

    “Ultimately the goal is inflation related increases, but we have to take a detour of becoming cost-reflective to cover the cost of the plants and to deal with the fact that we have old infrastructure.”

    He added that in terms of taxpayers footing the bill for capital expansion, he believed “we are over the hill now and going downwards”.

    Responding to a question from opposition MP Lance Greyling, Bukula said Nersa had leverage in making sure Eskom went about expanding infrastructure in a cost efficient way.

    He confirmed that Nersa was looking into complaints about problems with the utility’s contract with Hitachi to supply boilers for its new Medupi and Kusile plants, and would fine Eskom if it were at fault.

    “On penalties for Hitachi, the jury is still out. All of these things are going to be out in the open in the regulator’s account.”

    The regulator would also take into account the re-evaluation of Eskom’s assets, which could differ from the assessment it submitted in its MYPD2 application. Bukula also reiterated Nersa’s commitment to keeping Eskom’s credit rating stable.

    In May, Eskom’s finance director Paul O’Flaherty told MPs the utility needed tariffs to reach a price level of 90c/kWh in real terms, in five years, to complete its R385bn build programme and pay off its debt.  — Sapa



    Eskom Nersa
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleHow data journalism could save the media
    Next Article Cell C takes knife to data prices

    Related Posts

    The little-known company disrupting Eskom’s monopoly

    16 June 2025

    Coal to cash: South Africa gets major boost for energy shift

    13 June 2025

    Why AI could soon be managing your home solar system

    9 June 2025
    Company News

    Why parents choose CambriLearn for online education

    19 June 2025

    Disrupt first, ask questions later – the uncomfortable truth about incident response

    18 June 2025

    Sage brings together HR leaders to explore the future of payroll and people management

    18 June 2025
    Opinion

    South Africa pioneered drone laws a decade ago – now it must catch up

    17 June 2025

    AI and the future of ICT distribution

    16 June 2025

    Singapore soared – why can’t we? Lessons South Africa refuses to learn

    13 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.